Monday, June 7, 2010

Carlyle Co-founder Distributionstein

Carlyle Group co-founder David Rubenstein noted the return of good times for private equity underwriters (PEU's). He told WaPo:

“We are now seeing a pickup. Valuations in our portfolio companies for the last three quarters have gone up. There has been a pickup in deal value and a pickup in distributions,” back to the people and firms that give private-equity companies money to invest.

The Carlyle Group monetized many affiliates in 2010. This provides checks for Carlyle investors, who like to touch their money once in a while. If salesman Rubenstein is successful, that's a brief touch. Reinvestment is a PEU's lifeblood.

Also, private equity managers might want to lock up "carried interest" profits, hoping to avoid tax increases.